Eller CoReceived Merchandise on Consignment

question 8

Multiple Choice

Eller Co.received merchandise on consignment.As of January 31, Eller included the goods in inventory, but did not record the transaction.The effect of this on its financial statements for January 31 would be

• A)net income, current assets, and retained earnings were overstated.
• B)net income was correct and current assets were understated.
• C)net income and current assets were overstated and current liabilities were understated.
• D)net income, current assets, and retained earnings were understated.

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Definitions:

Be With Other People

The act of spending time in the company of others to engage in social activities, communication, or for the purpose of establishing relationships.

Belong

The innate human need to be an accepted member of a group, whether it's family, friends, or a larger social context.

Affiliation Motive

The innate need to form and maintain interpersonal relationships and feel connected to others.

Threatened

Feeling threatened involves experiencing fear or anxiety over a perceived risk or danger to one's safety, well-being, or position.